April 17, 2012 - In the News
Thurber quoted on Argentina's planned re-nationalization of YPF
Appeared in Bloomberg News, April 16, 2012
PESD associate director Mark Thurber argues in Bloomberg News that Argentina’s government should not expect a near-term boost in domestic fuel production from its planned re-nationalization of oil company YPF, which is majority-owned by Spain’s Repsol. Even over the longer term, national oil companies are not always effective instruments for serving government goals like increased domestic production. The timing is especially sensitive given the nascent development of Argentina’s massive unconventional hydrocarbon resources.
Excerpt from Bloomberg News article:
YPF Takeover Sparks Biggest Dollar Bond Plunge: Argentina Credit
2012-04-16 18:54:45.609 GMT
By Katia Porzecanski and Camila Russo
April 16 (Bloomberg) -- Argentine dollar bonds posted the biggest decline among emerging-market debt after the government said it plans to seize 51 percent of YPF SA, the country’s biggest oil company.
...[President Cristina Fernandez de Kirchner] is pressuring energy companies to boost output after fuel imports doubled to $9.4 billion in 2011 from a year earlier, helping the country’s trade surplus narrow to a one- year low of $280 million in December.
“Nationalizing, in the short term, doesn’t buy you very much, and in the long term it’s challenging to make it work,” Mark Thurber, associate director for research at Stanford University’s Program on Energy and Sustainable Development, said in a telephone interview. “It’s hard to see what positive benefit this accomplishes. Argentina definitely has its own way of doing things.”